'People are still spending money': Small-business owners worry about a recession, yet many feel confident they will survive one. Here's why

More than four in five small business leaders say they worry that a recession will hit the economy soon and it will impact their businesses, according to a new survey by online business-banking platform Kabbage, a checking-account service by American Express AXP, -0.26%.

The small business leaders aren’t alone. Wall Street forecasters from J.P. Morgan & Chase JPM, -0.56% CEO Jamie Dimon and Goldman Sachs GS, -0.09% CEO David Solomon to investor Michael Novogratz see economic storm clouds ahead as the U.S. Federal Reserve attempts to engineer a “soft landing” while simultaneously taming inflation. A Financial Times survey conducted in early June showed that a majority of economists predicted a recession will begin in 2023.

As of the end of May, the cost of living had risen by 8.6% compared to a year ago. With inflation at a 40-year high, the Central Bank has implemented a series of interest-rate hikes that could put the federal funds rate between 3.25% and 3.5% by the end of the year, according to Bankrate, a personal-finance website. The Fed had kept interest rates at close to zero as a way to incentivize economic activity since the beginning of the coronavirus outbreak.

Still, Kabbage also found that small-business owners may be drawing lessons from the pandemic to help them prepare for a recession. Around 80% of respondents are confident about their business surviving a potential recession, and said the top reason they feel that way is that the pandemic has helped them find a greater sense of resilience and to prepare for any upcoming economic turbulence ahead.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asexual And Aromantic People, Tell Us What You Wish People Would Stop Saying To YouWe want to hear from you!
Source: BuzzFeed - 🏆 730. / 51 Read more »

Nearly 25 People Displaced After Apartment Building Fire Spreads To Homes In Hunting ParkClouds of black smoke and flames seen vividly in the distance stalled traffic and distracted drivers on the busy North Broad Street while leaving dozens of residents without shelter. jpayoute reports
Source: CBS Philly - 🏆 308. / 63 Read more »

Doctors and researchers encourage people to be mindful of their brain healthWith June being Alzheimer’s and Brain Awareness month, doctors and researchers of the AHEAD study are urging people to be conscious about their health and their loved ones.
Source: WTVYNews4 - 🏆 590. / 51 Read more »

Gunman at large after shooting 2 people, 1 fatally, on Muni train in San FranciscoSAN FRANCISCO — A search was underway Wednesday for a gunman who shot two people, one fatally, on a packed Muni commuter train in San Francisco, police said.
Source: WOKVNews - 🏆 247. / 63 Read more »

Gentle Parenting Is a TikTok Buzzword — but Here's What Most People Get WrongGentle parenting is all over TikTok, but the parenting technique is more nuanced than a 30- to 60-second video can capture. Here's how it actually works.
Source: POPSUGARMoms - 🏆 117. / 63 Read more »

Rapper Lil TJay 1 of 2 people shot overnight near shopping plaza in Edgewater, New JerseyLil TJay is a well-known artist, with millions of followers on social media and signed to Columbia Records. He was one of two people shot in Edgewater. KevRincon reports.
Source: CBSNewYork - 🏆 268. / 63 Read more »